Kaito was a remote village in the far northern reaches of the area just outside the Icecap Zone. The village was exclusively populated by Arctic Wolves, and is noted to be the hometown of Varos the Wolf and Elder Zathiran Kaito.
Kaito was started by the originally nomadic Kaito family and several traders when they could venture no further for food. The settlement was not intended to be permanent, but harsh weather conditions forced the company to stay for months. Eventually, the family of nomads and traders decided it best to keep their fortified settlement standing instead of wasting their time tearing it down. Thus, the leader of the nomads declared himself leader of the village, and so the village of Kaito was established.
The village went through many generations of rulers from the Kaito family, and the somewhat isolated settlement enjoyed a long period of peace of prosperity. However, when Elder Zathiran assumed leadership, this began to change. Zathiran's radical changes brought great economic successes, but at the cost of a weak military. The nomads of Orzamein saw the village as an easy target, and raided the village with ease, leaving few people alive.
Zathiran, distraught over the loss, ordered gigantic walls built around the settlement and it's hunting grounds. This would not last either, however, and when the Cirsuimenian Invasion occurred, Judas led his troops straight through the village, offering the villagers life serving in his army, or death. The villagers chose to serve him, and so the villagers joined his army, Elder Zathiran himself becoming a rather unwilling officer.
After the failure of Elder Zathiran to kill the members of The Sonic Family, Judas saw no more use in the village, and ordered it completely destroyed.